Low Income Senior Housing, HAP Contract, Should I buy?

[Greg Castor]

I have found a Low Income Senior Housing apartment complex that is operating under a HAP contract from HUD. This property is in a very tiny town in rural Missouri, and if it were not for the HAP contract, the community would not otherwise be able to support the apartments. I have never been associated with HUD or HAP contracts in any way, but the very low purchase price and very good condition of this property captured my interest. By all other conventional measures, the property is a steal, and I would buy it in a heartbeat, but I am finding it very difficult to get good information from HUD and others as to how to manage this type of property to maximize profit. It seems capturing profits under this type of scenario is quite elusive. What things are required for a for-profit investor to make this worth his while? All input is appreciated.